Joe Patton

Sucks, doesn't it? I don't know about anyone else, but I have felt the pinch in my business. Not to say things are at a dead stop, but I have shifed down a gear for sure. I was always under the impression (false maybe) that if I provided the very best possible service to my clients, there would always be enough business to keep me going and provide for my family.... Can't give top quality service (or lousy service for that matter) if there are no buyers to move property. Even if you have listings, they still won't move without a ready, willing and able buyer.

Which brings me to my point. Ready, willing and able buyers. Between the current economic conditions in the nation, the presidential election, high foreclosure rates and many more unstable mortgages, and the government's unprecidented interferance in our "free markets" its a wonder we aren't having a mass exsodus to Cananda and Mexico. If you have a stock portfolio you probably just took a nasty hit. Even people who a month ago didn't know what the Dow Jones or NASDAQ was, are scared. The fear mongering by the media about house price declines and the stock markets is enough for anyone without a degree in economics to go hide their money in a mattress.

You add on to that the questionable lending practices from the last 5 years or so and the fact the the lending market has tightend up its parameters significantly, anyone without solid credit and down payment money is being knocked out of the buyer pool pretty quickly. Utah has gotten used to the days of 0 down or seller paid down payment assistance and closing costs. While the closing costs are still available, down payment is not something a lot of borrowers have in spades, or at all.

Okay, enough fear mongering of my own (and I complain about the media!). On to the good stuff!
Utah has a growing econemy. 70 to 80 thousand people are going to move to this state in 2008. I haven't seen the projections for 2009 but if they follow the trend for the last 3 years it will be 50,000+. There is still job growth in our state. While the inventory is still deep in terms of housing, we are depleting the "new construction" inventory in most areas. This state still has plenty of affordable housing. Even in the high end counties you can still find a place for under 250k. In some areas you can still find a place for under 150k. Nice stuff too, not in the bario. That is remarkable given the states that surround us.

What is it going to take for buyers to come off the sidelines and into the game? In my opinion, it will take more general stability than we are seeing right now. Too many factors, real or imagined, are keeping people scared or at least hesistant. Once we feel a "bottom" to the housing price decline and start hearing something on the news other than financial meltdown, and we have a new president (regardless of who it is) we should see people start to come back to the market. I heard a figure a couple days back on a popular business news program that I watch regularly. There is something like 3 trillion $ (yes, trillion with a "t") sitting in cash on the sidelines being held out of the markets by private investors right now. What do we think is going to happen when those flood gates open and 3 trillion dollars shows up in the market place? Can anyone say economic boom? And do we really think none of that money will be used to buy up the deep real estate inventory?

This is still America.... the most prosperous nation in the world. We will come out of our bumpy spot. We will have to fix some things first and let some other things fall on their face. But once we pick ourselves up and dust ourselves off, we will be fine. Right back to the good times. So work those buyers that are out there and service the listings you have like there is no tomorrow! You make a great point.... there are some fantastic buys out there right now. Keep your chin up and keep on keepin' on!

Written by a guy who knows very little about nothing much! - Thu Oct 30 2008, 06:11